Borsa Istanbul on June 13 led losses that hit stock exchanges around the globe after Israel overnight hit Iran with missiles.

The Turkish stock exchange’s benchmark BIST-100 index dropped 3.5%, compared to the 1.5% loss incurred by the Tel Aviv stock exchange’s benchmark TA-35.

Tehran’s benchmark index fell 3.2%.

Table: Benchmark indices of the world's leading stock exchanges in the world as of noon (Central European Summer Time, CEST) on June 13.

On Borsa Istanbul, circuit breakers were activated on dozens of stocks, while only a few shares were trading higher compared to the market close on June 12.

The banking index (XBANK) was down 3.2% while the transportation index (XULAS) was down 5.7% with airlines hit.

USD/TRY under control

The USD/TRY pair, meanwhile, remained under control with a limited 0.2% d/d rise taking trading into the 39.40s. The USD index (DXY) was up 0.5% d/d to hover in the 98s.

As a result, the USD-denominated BIST-100 index was down 4% d/d.

CDS and eurobonds, no collapse

Turkey’s CDS remained below the 300-level, while the yield on the Turkish government’s 10-year eurobonds remained above the 7%-level.

Oil price a problem

The Brent oil price was, meanwhile, up 8% d/d, trading in the $75s. This is bad news for Turkey, which is almost totally dependent on imports for oil and gas. The gasoline price in the country will soon surpass the Turkish lira (TRY) 50 ($1.3)-level per litre.

Profitmongers in Turkey’s regime love a war

Istanbul Blog writes: However, if the war between Israel and Iran proves prolonged, the Erdogan regime in Turkey will profit from it. It has in recent years found ways to profit from the wars and conflicts in Iraq, Syria, Libya and Ukraine, among others.

At this point, the difference between the country, Turkey, and the Erdogan regime should not be overlooked or dismissed. The regime profits from wars, while Turks in general suffer the costs.

As of midday (CEST) on June 13, Turkey’s president, Recep Tayyip Erdogan, remained silent on the Israeli attack on Iran, while his deputy president, press secretary at his Justice and Development Party (AKP), his foreign ministry and Turkey's main opposition party (in other words, the level of opposition that Erdogan permits in Turkey to give the regime apparent legitimacy) issued strong statements.

Mind the language

Erdogan could make a few million if he was to be paid per swear word he has directed at Israel’s PM, Benjamin Netanyahu, over the years.

However, do not be fooled by 'easy' media headlines. All through the Iraq and Syria operations of recent decades, all of the US' proxies in the Middle East, including Turkey's government, have served in harmony with Washington's requirements. And where those requirements mean indulging Israel, they have complied.

Though the scope of the current Iran operation is not certain at this moment (among expectations are a possible final blow dealt to the Iranian mullahs' regime or another chapter that does not extend beyond missile exchanges conducted according to unspoken limitations), the US proxies, including Turkey's Erdogan administration, will essentially do as they are told.

The regime, as mentioned, will of course go about extracting financial gain. Perhaps there will be profiteering on below-the-radar arms sales or some sanctions-busting. To the powers that be, such things are nothing but excusable misbehaviours.